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Cumberland and Westmorland Herald
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    Long-awaited go-ahead for A66 dualling scheme

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    Extinction Rebellion protest outside insurance brokers

    Lake District mountain rescue volunteers called for missing man searching for lost phone

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    Changes to lease accounting – how will this impact your financial statements?

    Man fined £100 for using cashpoint in car park

    Man fined £100 for using cashpoint in car park

    Honour for man who devoted his life to Greystoke

    Honour for man who devoted his life to Greystoke

    Sheep breeder’s successful debut at Royal Highland Show

    Sheep breeder’s successful debut at Royal Highland Show

    Global engineering firm Babcock supports Eden charity

    Global engineering firm Babcock supports Eden charity

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    Penrith skipper Nicky Burns calls on team to keep winning

    Penrith skipper Nicky Burns calls on team to keep winning

    £100,000 target for new changing rooms extension

    £100,000 target for new changing rooms extension

    Medal success for Upper Eden tug-of-war team

    Medal success for Upper Eden tug-of-war team

    Eden man competes in Hyrox World Games

    Eden man competes in Hyrox World Games

    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

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    Penrith teen crowned British vault champion

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    Penrith gymnasts represent North of England in finals

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Home Latest

Household energy bills to be capped at £2,500

by CWH
8 September 2022
in Latest, News
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Liz Truss

New Prime Minister Liz Truss has revealed plans to tackle energy bill rises and Cumbria has responded.

Household energy bills from October 1 will be capped at £2,500 a year, with firms also getting some relief.

The support will last for two years and the Government is estimated to borrow £100 billion to pay for it.

Every UK household is already due a one-off £400 discount on their fuel bills from October, which will be made in six instalments over the winter period.

This will mean bills will be close to where the current energy price cap stands and households are estimated to save £1,000 a year.

A discount of £650 will be paid to more than eight million low-income households who receive benefits or tax credits, alongside further payments to pensioner households and disabled people.

For those who don’t directly benefit from the new proposals, a fund giving equivalent support will be set up, including for those not on standard gas and electricity contracts.

Under the new plans, both small and large businesses will be protected with equivalent support, but only for six months with a review taking place after three months.

After this time, the most vulnerable businesses such as pubs and restaurants will be protected.

Schools, hospitals and other public buildings and businesses will also receive support, meaning they will not face the 500 per cent – 600 per cent hikes in costs some had seen predicted.

To limit the amount customers’ bills go up by, the Government is compensating energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers. Customers will not be expected to repay the support.

Specific costs of the support plan are set to be announced later this month.

An energy taskforce is also being established to negotiate with energy suppliers about the long term price of energy.

Ms Truss said: “Decades of short-term thinking on energy has failed to focus enough on securing supply – with Russia’s war in Ukraine exposing the flaws in our energy security and driving bills higher. I’m ending this once and for all.

“I’m acting immediately so people and businesses are supported over the next two years, with a new Energy Price Guarantee, and tackling the root cause of the issues by boosting domestic energy supply. 

“Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again.”

Before the new cap, a typical household’s annual gas and electricity bill was set to rise from £1,971 to £3,549 in October.

The Government said the new support would curb inflation by up to five percentage points compared to current forecasts and will boost growth, increase tax receipts and bring certainty to businesses.

Despite the new price cap, the End Fuel Poverty Coalition pressure group said 6.9 million UK households will still be in fuel poverty this winter.

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